CRISIL Ratings has upgraded the long-term rating on InCred Finance to ‘AA-/Stable’ from ‘A+/Stable’.
“The upgrade in ratings reflects strong capitalisation of the company supported by high pedigree of investor base, coupled with steady improvement in earnings profile. The ratings also factor in InCred’s experienced leadership team and diversified loan portfolio,” the company said in a press release.
InCred Finance’s net-worth rose to Rs 3,218 crore as on December 31, 2023 from Rs 2,484 crore as on March 31. The increase in net-worth was supported by the Rs 500 crore equity capital raised by the company in December 2023.
The loan book of InCred Finance rose 55% year-on-year(y-o-y) to Rs 8,013 crore as on December 31 aided by a growth in business loans. In a separate press release, the company said more than 30 businesses funded by InCred Finance featured on Shark Tank India. Around 25% of these borrowers have gone on to successfully raise equity, further propelling their expansion.
The company continues to see a rapid month-on-month growth trajectory and steady credit costs. The cost-to-income ratio for the company also saw a healthy decline to 44% from 56%.
“The rating upgrade makes me immensely proud that in a rapidly evolving and competitive market like India, InCred Finance has established a strong position in Consumer and MSME lending,” says Bhupinder Singh, founder and group chief executive officer, InCred Finance.